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ebay marketing

about ebay business plan and marketing strategy.

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ebay marketing

  1. 1. Anil Kumar ISMC
  2. 2. Digital Tools for E-Communication WAP /GPRS / 3G / In-Car Communication Palm Pilot (hand help PC or Communicator) / Laptop Interactive / Digital TV Virtual reality on PC Video mail / Video Communication Real audio Other multi-media on PC Fewer People Personal Computer Net Access E-mail Fax Most People Mobile Telephone (GSM) Voice mail on mobile / Text Messaging Cards with bar code (eg entry cards etc.) Smart cards (e.g., credit cards, phone cards) Everyone Digital Tools For E-Communication People With Access
  3. 3. From One-to Many to One to Some & One-To-One
  4. 4. About <ul><li>Came into existence in 1995. </li></ul><ul><li>American Company-Owner Pierre Omidyar </li></ul><ul><li>An online auction and shopping website in which people and businesses buy and sell goods and services worldwide. </li></ul><ul><li>Has established localized websites in thirty other countries. </li></ul><ul><li>eBay Inc. also owns PayPal, Skype, StubHub, and other businesses. </li></ul><ul><li>Core message was that eBay is a company that is in the business of connecting people, not selling them things. </li></ul>
  5. 5. Some quick facts <ul><li>The very first item sold on eBay was a broken laser printer for $14.83. </li></ul><ul><li>The domain attracted at least 902 million visitors annually by 2008 according to a study. This was thrice the numbers of </li></ul><ul><li>“ Anyone can sell anything. Anything means anything.” (even services). </li></ul>
  6. 8. ebay offers three kinds of auctions <ul><li>Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price. </li></ul><ul><li>Fixed Price format allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid. </li></ul><ul><li>Dutch Auctions allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered. </li></ul>
  7. 9. Business model <ul><li>Browsing and bidding on items is free of charge, </li></ul><ul><li>But sellers are charged as follows: </li></ul><ul><li>Insertion fees. When an item is listed on eBay, this nonrefundable fee is charged. It ranges between 30 cents and $3.30, depending on either the seller’s opening value or reserve price. </li></ul><ul><li>Promotional fees. Fees are also charged for additional listing options that help attract attention for an item, such as highlighted or bold listings. </li></ul><ul><li>Final value fee. This is a commission that is charged to the seller at the end of the auction. This fee generally ranges from 1.7% to 5.25% of the final sale price. </li></ul>
  8. 10. E-Com Model 1 st Step : Registration 2 nd Step : Interaction 3 rd Step : Transaction Seller Buyer Registers Bids on item Checks Feedback Wins Auction Registers Chooses Item Lists Item Checks Feedback Exchange E-mails ebay notifies Buyer & Seller Exchange Item for payment Leave feedback for each other Pays ebay
  9. 11. Mobile Marketing <ul><li>M-Commerce: Transfer of Technology </li></ul><ul><li>Players: </li></ul><ul><li>eBay Anywhere </li></ul><ul><li>Strategic Partners: </li></ul><ul><li>Mobile Competitors: Yahoo!Mobile & Amazon Anywhere </li></ul><ul><li>Is M-Com Model Feasible? Yes </li></ul>
  10. 12. SWOT Analysis <ul><li>Oportunities - Mobile Commerce (LT) </li></ul><ul><li>Internet Usage (ST) </li></ul><ul><li>Development in International market. </li></ul><ul><li>Threats - New Regulations (ST) - Fraudulent Activities (LT) </li></ul><ul><li>Strengths - Brand Recognition </li></ul><ul><li>- Community Affinity </li></ul><ul><li>Weaknesses - System failures </li></ul><ul><li>-low control over product quality. </li></ul>Oportunities Weaknesses Threads Strengths ST LT ST LT
  11. 13. Results Overview
  12. 14. Competitor Analysis
  13. 16. Acquisitions <ul><li>Skype [Oct. 2005] </li></ul><ul><ul><li>Global VoIP provider </li></ul></ul><ul><ul><li>Over 59 million registered users </li></ul></ul><ul><li>StubHub [Jan. 2007] </li></ul><ul><ul><li>~$307 million </li></ul></ul><ul><ul><li>Dedicated ticket-only marketplace </li></ul></ul>
  14. 17. Strategic Partnerships <ul><li>Yahoo! [May 2006] </li></ul><ul><ul><li>Exclusive 3 rd party provider of all graphical advertisements </li></ul></ul><ul><ul><li>Online payments, co-branded toolbar, & “click-to-call” functionality </li></ul></ul><ul><li>Google [Aug. 2006] </li></ul><ul><ul><li>Exclusive provider of text-based advertising outside US </li></ul></ul><ul><ul><li>“ Click-to-call” integration </li></ul></ul>
  15. 18. Global Joint Ventures <ul><li>PChome Online [June 2006] </li></ul><ul><ul><li>Internet provider in Taiwan </li></ul></ul><ul><ul><li>Co-branded website featuring auction style trading & fixed price sales </li></ul></ul><ul><li>TOM Online [Dec. 2006] </li></ul><ul><ul><li>Leading wireless Internet company in China </li></ul></ul><ul><ul><li>eBay EachNet & TOM Online combine to create new e-commerce community in China </li></ul></ul>
  16. 19. Expedia Proposal <ul><li>51% interest in Expedia Group </li></ul><ul><li>~3.7 billion </li></ul><ul><li>~5-7 year recovery </li></ul>
  17. 20. NASCAR Proposal <ul><li>Per year cost: ~$22 million </li></ul><ul><li>Net Revenue from NASCAR related sales $85 million </li></ul>
  18. 21. Stadium Proposal
  19. 22. Facebook Proposal <ul><li>Joint venture with </li></ul><ul><li>Student-to-student transactions for used textbooks </li></ul><ul><li>Expose college students to eBay auctions </li></ul><ul><li>Future options with </li></ul>
  20. 23. Clicking one… Clicking two… Clicking three… Sold! !
  21. 24. <ul><li>Strategic change in vision from being an online bookstore in 1995 to becoming world’s largest online store </li></ul><ul><li>Leveraged on the strength of brand value and business model </li></ul><ul><li>Very low fixed costs </li></ul><ul><li>Geographical expansion in Canada, Western Europe, Japan & most recently China. </li></ul>
  22. 25. What says… <ul><li>Customer is the King – Create an experience for him </li></ul><ul><li>‘ Culture of Metrics’ Customer’s each ‘click’ on website is recorded- a valuable asset for Amazon </li></ul><ul><li>Allows clear sensing of customer needs & preferences </li></ul><ul><li>Formation of ‘S Team’ to address strategy issues </li></ul><ul><li>Customer is the key at all levels in the Organisation </li></ul><ul><li>Customer Loyalty and repeat purchase </li></ul><ul><li>Amazon do not over emphasise competitors – It has turned some of them like Borders in to collaborators. </li></ul>
  23. 26. Amazon …an experience <ul><li>Selection </li></ul><ul><ul><li>Wide product range </li></ul></ul><ul><ul><li>Books, videos, many more …and they have a category ‘Crazy Things’ under Toys & Games ! </li></ul></ul><ul><li>Convenience </li></ul><ul><ul><li>Selection available on your screen </li></ul></ul><ul><ul><li>Various price ranges – New & Used </li></ul></ul><ul><ul><li>Delivery in shortest possible time </li></ul></ul><ul><li>Prices </li></ul><ul><ul><li>Prices revised daily </li></ul></ul><ul><ul><li>Many times Free Shipping </li></ul></ul><ul><ul><li>‘ Goldbox’ – Discounts on new categories. </li></ul></ul>